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PRIOR PRINTER'S NO. 579
PRINTER'S NO. 2284
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
564
Session of
2019
INTRODUCED BY SAYLOR, RYAN, BARRAR, JAMES, READSHAW, BERNSTINE,
MURT, ROTHMAN, MILLARD, McNEILL, B. MILLER, LAWRENCE,
WHEELAND, ZIMMERMAN, KAUFFMAN, GOODMAN, CIRESI, JONES, HILL-
EVANS, MENTZER, BOBACK, DUSH, DIAMOND, EVERETT, NEILSON,
MALONEY, KORTZ, FRITZ, HAHN, STAATS, RADER, GLEIM AND
HARKINS, FEBRUARY 28, 2019
AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 27, 2019
AN ACT
Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
act relating to insurance; amending, revising, and
consolidating the law providing for the incorporation of
insurance companies, and the regulation, supervision, and
protection of home and foreign insurance companies, Lloyds
associations, reciprocal and inter-insurance exchanges, and
fire insurance rating bureaus, and the regulation and
supervision of insurance carried by such companies,
associations, and exchanges, including insurance carried by
the State Workmen's Insurance Fund; providing penalties; and
repealing existing laws," in uniform health insurance claim
form, further providing for forms for health insurance
claims. QUALITY HEALTH CARE ACCOUNTABILITY AND PROTECTION,
FURTHER PROVIDING FOR PROMPT PAYMENT OF CLAIMS.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1202 2166 of the act of May 17, 1921
(P.L.682, No.284), known as The Insurance Company Law of 1921,
is amended to read:
Section 1202. Forms for Health Insurance Claims.--(a) Each
health insurance claim form processed or otherwise used by an
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insurer, including those used by the Department of [Public
Welfare] Human Services for public health care coverage, shall
be the uniform claim form developed by the department. The claim
form shall be identical in form and content except as provided
in subsection (c). The department shall, in consultation with
the Department of [Public Welfare] Human Services, insurers and
health care providers or their representatives, first consider
the feasibility of utilizing the UB-82/HCFA-1450 and HCFA-1500
forms, or their successors, as a uniform claim form. If these
forms are deemed to be unsatisfactory, the department shall, in
consultation with the Department of [Public Welfare] Human
Services, insurers and health care providers or their
representatives, develop a uniform claim form for use by all
insurers, the Department of [Public Welfare's] Human Services'
public health care coverage program and health care providers.
The uniform claim form shall contain blank spaces at appropriate
places in the document for approved additional information
requests under subsection (c).
(b) The feasibility study and subsequent development of the
uniform claim form shall be complete within one hundred eighty
(180) days of the effective date of this article. All insurers,
the Department of [Public Welfare's] Human Services' public
health care coverage program and health care providers shall be
required to use the uniform claim form within one hundred twenty
(120) days after the uniform claim form is developed. The
department may consider a request from the Department of [Public
Welfare] Human Services for an extension in meeting the
implementation schedule of this section.
(c) (1) Subject to the procedure contained in clause (2),
an insurer may request that a claimant provide departmentally
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approved additional information which is not requested on the
uniform claim form.
(2) An insurer may request departmental approval of
additional information requests to be printed in the blank
spaces on the uniform claim form, and on subsequent pages if
necessary, by submitting a written request to the department.
Such a request shall be deemed approved by the department if not
disapproved within sixty (60) days after receipt of the request.
A disapproval shall be subject to the procedures under 2 Pa.C.S.
(relating to administrative law and procedure).
(3) If, in a dental claim form, an insured specifically
authorizes payment of benefits directly to an entity or person
who provided dental services in accordance with the provisions
of the policy, the insurer shall make the payment to the
specific provider of the dental services. The insurance contract
may not prohibit, and claim forms must provide an option for,
the payment of benefits directly to the specified provider of
the dental service. The insurer may require written attestation
of the assignment of the payment. Payment to the specific
provider of the dental services from the insurer may not be more
than the amount that the insurer would otherwise have paid
without the assignment of payment.
(d) In the case of vision and dental claim forms and in the
case of supplemental major medical claim forms, utilization of
the uniform claim form shall be at the discretion of the
individual insurer.
(e) (1) The Legislative Budget and Finance Committee shall
conduct a study to examine all of the following:
(i) The costs and benefits associated with the direct
reimbursement of nonparticipating providers by health insurance
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carriers under a valid agreement of benefits.
(ii) The impact on consumers of prohibiting health insurance
carriers from refusing to accept a valid assignment of benefits.
(iii) The impact of requiring direct reimbursement of
nonparticipating providers by health insurance carriers on a
health insurance carrier's ability to maintain an adequate
number of providers in the health insurance carrier's network.
(2) A report on the study under clause (1) shall be
presented to the chairperson and minority chairperson of the
Banking and Insurance Committee of the Senate and the
chairperson and minority chairperson of the Insurance Committee
of the House of Representatives no later than thirty-six (36)
months after the effective date of this subsection.
SECTION 2166. PROMPT PAYMENT OF CLAIMS.--(A) A LICENSED
INSURER OR A MANAGED CARE PLAN SHALL PAY A CLEAN CLAIM SUBMITTED
BY A PARTICIPATING HEALTH CARE PROVIDER OR NONPARTICIPATING
HEALTH CARE PROVIDER WITHIN FORTY-FIVE (45) DAYS OF RECEIPT OF
THE CLEAN CLAIM.
(B) IF A LICENSED INSURER OR A MANAGED CARE PLAN FAILS TO
REMIT THE PAYMENT AS PROVIDED UNDER SUBSECTION (A), INTEREST AT
TEN PER CENTUM (10%) PER ANNUM SHALL BE ADDED TO THE AMOUNT OWED
ON THE CLEAN CLAIM. INTEREST SHALL BE CALCULATED BEGINNING THE
DAY AFTER THE REQUIRED PAYMENT DATE AND ENDING ON THE DATE THE
CLAIM IS PAID. THE LICENSED INSURER OR MANAGED CARE PLAN SHALL
NOT BE REQUIRED TO PAY ANY INTEREST CALCULATED TO BE LESS THAN
TWO ($2) DOLLARS.
(C) FOR PURPOSES OF THIS SECTION, A CLAIM SHALL BE DEEMED TO
BE PAID WHEN A LICENSED INSURER OR MANAGED CARE PLAN:
(1) MAILS A CHECK TO THE PARTICIPATING HEALTH CARE PROVIDER
OR NONPARTICIPATING HEALTH CARE PROVIDER; OR
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(2) MAKES AN ELECTRONIC TRANSFER OF FUNDS TO THE
PARTICIPATING HEALTH CARE PROVIDER OR NONPARTICIPATING HEALTH
CARE PROVIDER.
Section 2. This act shall take effect in 60 days.
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